CARBON-BALANCE

Solar energy is a key component of the Carbon Free Mix. Paul Detering reports that Technology development in the solar industry continues to accelerate at an unprecedented rate. Over $3 billion was invested in new companies and technologies in 2008 alone, and investments in solar have doubled every year for the last five years. For developing countries this should serve as good news.

Latest report from Carbon Offset daily underlines the significant comparative advantage China has in generating Carbon Credits. They are reporting The Norwegian Ministry of Finance has signed an agreement to buy carbon credits from Shenhua Group, China’s largest coal miner, under the clean development mechanism (CDM), a statement on the State-owned Assets Supervision and Administration Commission’s website said on Tuesday. The certified emission reductions (CERs) will be generated from four wind farm projects in Chicheng and Tongliao in Inner Mongolia autonomous region, developed by Guohua Energy Investment Co, a subsidiary of Shenhua Group. The four projects are expected to generate over 400,000 tons worth of reduction of carbon dioxide emissions every year. The annual revenue is expected to reach 4.8 million euros.

U.S. President Barack Obama on Saturday invited 16 "major economies" including the European Union and the United Nations to take part in a forum on climate change to facilitate a U.N. pact on global warming * 16 major economies invited for climate talks in April * Forum would help advance U.N. talks for a global deal Finally a president and an administration which means business on the environment.

Interesting bit of news. The United States has asked the United Nation's International Maritime Organization to create a buffer zone around America's coastline to cut pollution from ocean-going ships that harms human health The Thomson Reuters Carbon Blog is one of the best out there its free with approved registration.

MENA Carbon Forum 2009 (May 6-7; Cairo, Egypt) The main objective of this Forum is to bring on a unique regional platform, various stakeholders that are active in the carbon market: project owners and developers, CDM governance bodies, financial institutions as well as carbon market buyers and intermediaries and service providers to discuss the latest developments related to carbon market and create ample opportunities for networking and business development. For those interested in exploring the potential in the Middle East and North Africa

Carbon markets up 84% in 2008 New Carbon Finance’s latest analysis of 2008 trading activity confirms our Q3 2008 projections with total transactions throughout the year worth $118bn, representing 4bn tonnes of carbon allowances changing hands. In spite of the uncertain economic climate, we expect growth in the global carbon market to continue, reaching $150bn in 2009

For prospective investor, stake-holders, project developers and managers it is worth keeping in mind that there is a procedure in place to regulate CDM Projects. The CDM has been designed to incorporate a rigorous project cycle. To develop a CDM project, the following regulatory steps occur in the project cycle: Design of the CDM project and preparation of necessary project documentation, including the Project Design Document; Obtain approval from the host country’s Designated National Authority; Receive validation by the Designated Operational Entity (DOE) and registration of that project with the CDM Executive Board; Establish monitoring of the project’s emission reductions; Complete verification and certification of the project’s emission reductions by the DOE; Receive CERs by the CDM Executive Board. The devil is always in the details. There are several factors which may affect the lag at each stage of the process.

As a general bit of advice it is worth clarify what projects would qualified under CDM. As a basis guideline provided through MDG CarbonFacility: A CDM project reduces or avoids the emission of greenhouse gases in a developing country. Examples of such projects include: Renewable energy, such as wind, hydroelectric or solar; Biomass residues, such as utilizing bagasse for electricity generation in a sugar factory; Energy efficiency measures, such as the introduction of compact fluorescent light bulbs or more efficient cookstoves; and Waste management practices, such as capturing methane emissions from wastewater treatment plants

CDM is the Clean Development Mechanism (CDM)established under the Kyoto Agreement offering developing countries the opportunity to use their comparative advantage in emissions reduction: their cost to reduce emissions is generally lower than that of developed countries I am sure the last part of this statement raises serious issues and echos of the statement made by Larry Summers.

A good source of information on the institutional support for Carbon Finance within the broad Millennium Development Goals, the MDG CarbonFacility provides that service.

This is blog 1 in my two part response to Alan Bey's request as to what is " Carbon Finance Thing". Part 1 provides a more detailed answer to my earlier entry stating that the carbon Market is by definition the trading in carbon and the permits to emit Green House Gasses (GHG). The EBRD defines Carbon finance' as the term used for carbon credits to help finance GHG reduction projects. As UNEP points out “emissions reductions can be achieved more quickly, and with less economic dislocation, by harnessing market mechanisms with a skilful blend of policies and measures”. In that respect the objective of carbon finance is to find the lowest cost emissions reduction possibilities. From this perspective Carbon Finance is the branch of Environmental Finance which studies and analyses the functioning of Carbon Markets: a market for the purchase and sale of emissions credits. Also known as Emissions trading (or emission trading) it is a market based approach used to control ...

As promised the second part of my 2 posts in response to Alan Bey's request. The terms used here are borrowed from the World Bank's glossary, which I have referenced as the relevant link. Follow the link for a more complete glossary. Carbon Finance : Resources provided to projects generating (or expected to generate) greenhouse gas (or carbon) emission reductions in the form of the purchase of such emission reductions. Certified Emission Reductions (CERs) : A unit of greenhouse gas emission reductions issued pursuant to the Clean Development Mechanism of the Kyoto Protocol, and measured in metric tons of carbon dioxide equivalent. Clean Development Mechanism (CDM) : The mechanism provided by Article 12 of the Kyoto Protocol, designed to assist developing countries in achieving sustainable development by permitting industrialized countries to finance projects for reducing greenhouse gas emission in developing countries and receive credit for doing so. Emission Reductions (ERs) ...

Members of the G20 have upped the ante linking the global summit on the present financial crisis to talks on climate change. In effect some members see the issue as an integral rather than a peripheral subject. The implication is clear : as long as the environment remains on the front-burner of international economic considerations it bodes well for carbon finance.

The Carbon Market is generally confused with the Market for Clean Energy. Though the two are complementary, they are two separate market solutions to the global environmental (climate) problems. Whilst the Clean Energy market refers to investments in alternative or renewable energy sources, the carbon Market is by definition the trading in carbon and the permits to emit Green House Gasses (GHG). The Carbon Market is one of the fastest growing markets in the world today. The latest figures from the World Bank show a doubling in size in 2007, growing to US$64 billion. The market has been expanding rapidly since 1997, when the Kyoto Protocol capped emissions of greenhouse gases. The growth of the Carbon Market has been built on both international and regional agreements. The demand for carbon assets stems from the efforts of nations and industries to meet emission reduction objectives.

Welcome to my Blog on Carbon Finance. This is a place to converse, share views and analyze the state of and developments in the Carbon Market. The focus is on issues relevant to the key sources of CMD projects and regulations affecting the market.

I have been following the proceeding of the recent Energy Pact Conference in Geneva organized by The Energy Pact Foundation ( March 16 - 17, 2009). The interwoven nature of the energy market and the state of the Carbon Market can not be dismissed. A clear reading of the objectives of the Conference which I think is worth stating here gives a good indication of the possibly paths of the ramification. The Energy Pact Conference has five objectives: • To build a common ground for ...

Upcoming Events on the related to Carbon Finance Sustainable Bioenergy 2009 London, 1 & 2 April Bioenergy North America 2009 Chicago, 17 April Carbon Prices Webinar Online, 20 May Carbon Finance North America 2009 New York, 11 & 12 June EU Emissions Trading 2009 Brussels, 9 & 10 July

This is the Natural Tropical Splendor which has inspired my commitment to the environment. That's what we are fighting for!!! A picture of the island of my birth St.Lucia !